DB Capital Adds to Denver Portfolio with $31M Acquisition of Aurora Apartment Complex
DB Capital Management (“DB Cap”) has acquired Apex on the Highline (“Apex”), a 138-unit multifamily property in Aurora, for $31 million, according to a press release from the multifamily investment firm. DB Capital plans to substantially renovate the property, which was built in 1984, to make it more competitive with other properties in Aurora.
The acquisition of Apex furthers DB Cap’s goal of building a local portfolio of 1,000 units by the end of 2022. The firm entered the market in October 2020 with the acquisition of Red Owl Apartments for $16.2 million.
“We see significant opportunity in the suburban submarkets and plan to aggressively pursue acquisitions to further grow economies of scale and establish a foothold in the Denver market. We like to target deals that fly just under the institutional radar where we feel like assets are not always priced to perfection,” said CEO and Co-Founder Brennen Degner. “This allows us to find great opportunities, deliver above market returns to our investors and still build scale quickly which allows for optimal operational efficiencies.”
Aurora continues to benefit from the migration of renters to the suburbs in search of less expensive housing options. The average asking rent in Aurora is approximately 12 percent below the Denver metro average, which continues to attract renters and drive down vacancy rates in the submarket. Apex was 99 percent occupied at closing.
Apex, located at 15597 E. Ford Circle, backs up to the Highline Canal Trail, suburban Denver’s most popular walking/running/biking trail that runs 71 miles from Waterton Canyon in Highlands Ranch to Green Valley Ranch in Denver. Additionally, Apex is less than a mile from the Town Center at Aurora with more than one million square feet of shopping and dining venues. Served by Denver’s RTD Light Rail System and with access to Interstates 225 and 70, area residents can commute to several of Denver’s largest employment hubs, including the Denver Tech Center, Fitzsimons Life Science District, Downtown Denver and Denver International Airport.
Planned renovations will primarily be centered on the exterior, including new exterior paint, modernized fitness center and an upgraded pool and deck area. In addition, the company will add a basketball court, courtyard area, package lockers, and refurbished landscaping to the property. Interior renovations will include new wood plank flooring, cabinetry, new hardware, countertops, plumbing and lighting fixtures, bathroom upgrades, as well as installing washers and dryers in the remaining 28 units.
“While the property had been well maintained by the seller, we believe we can create value by enhancing curb appeal, modernizing property amenities and improving the renter experience which will drive prospective renter volume and tenant satisfaction,” added DB Capital Regional Vice President Darren Hulick, who is responsible for acquisitions and asset management in the Denver market.